00 голосов за11 голос против

903 просмотров26 стр.Q - Cost Concept and CVP Problems With Answers PDF

Jul 09, 2018

© © All Rights Reserved

PDF, TXT или читайте онлайн в Scribd

Q - Cost Concept and CVP Problems With Answers PDF

© All Rights Reserved

903 просмотров

00 голосов за11 голос против

Q - Cost Concept and CVP Problems With Answers PDF

© All Rights Reserved

Вы находитесь на странице: 1из 26

Cost Concept

i. Harem Company uses an annual cost formula for overhead of P72,000 + P1.60 for each direct labor hour worked. For the upcoming month

Karla plans to manufacture 96,000 units. Each unit requires five minutes of direct labor. Harem Company’s budgeted overhead for the month

is

A. P 12,800 C. P 84,800

B. P 18,800 D. P774,000

ii. Total production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and 60,000 units of budgeted output,

respectively. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed

costs for 50,000 units. How much is Jordan’s budgeted variable cost per unit of output?

A. P 7.50 C. P30.00

B. P16.00 D. P62.50

iii

. Deakin Company is preparing a flexible budget for the coming year and the following maximum capacity estimates for Department OZ are

available:

Direct labor hours 60,000

Variable factory overhead P150,000

Fixed factory overhead P240,000

Assume that Deakin’s normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct labors,

in a flexible budget at normal capacity?

A. P6.00 C. P6.50

B. P7.50 D. P8.13

iv

. The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the month of July when the

expected production are 470,000 units. Below are the actual data from the prior three months of operations.

Production in units Manufacturing supplies

March 450,000 P723,060

April 540,000 853,560

May 480,000 766,560

Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that would be needed for

July? (Assume that this activity is within the relevant range.)

A. P 805,284 C. P 755,196

B. P1,188,756 D. P 752,060

v. The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs:

Units Maintenance Cost

3 P450

7 P530

11 P640

15 P700

Using the least-squares regression method to estimate the cost formula, the expected total cost for an activity level of 10 units would be

closest to:

A. P612.50. C. P595.84.

B. P581.82. D. P601.50.

vi

. Given the cost formula Y = P17,500 + P4X, at what level of activity will total cost be P42,500?

A. 10,625 units. C. 6,250 units.

B. 4,375 units. D. 5,250 units.

vii

. Balsy Company has provided the following data for maintenance cost:

Prior Year Current Year

Machine hours 12,500 15,000

Maintenance cost P27,000 P31,000

The best estimate of the cost formula for maintenance would be:

A. P21,625 per year plus P0.625 per machine hour.

B. P 7,000 per year plus P0.625 per machine hour.

C. P 7,000 per year plus P1.60 per machine hour.

D. P27,000 per year plus P1.60 per machine hour.

viii. In the equation Y = P4,000 + P3X; Y is the cost of workers' compensation insurance and X is direct labor hours. According to this equation, a

100-hour change in total direct labor hours will change the cost of workers compensation insurance by

A. P4,000. C. P4,300.

B. P 300. D. none of the above amounts.

ix. Using multiple regression, you have identified P12,000 of unit level costs for 3,000 units, P1,000 of product level costs for 40 products, and

P3,500 of customer-level costs for ten customers. The cost of Job 002 which used 800 unit level activities, 4 product level activities, and one

customer-level activities amounts to

A. P3,650 C. P3,050

B. P3,250 D. P2,950

x. It takes a worker 10 minutes to assemble a toy. With a learning curve of 70% as production doubles, the average time (per unit) needed to

make 8 units would be

A. 4.90 minutes C. 3.33 minutes

B. 3.43 minutes D. 3.23 minutes

xi. The cost to rebuild a race car engine is P1,500, and a buyer offers to buy four engines for P6,000. Assuming a cumulative learning curve of

90% as production doubles, the incremental cost of the third and fourth items will be

A. P 0 C. P2,160

B. P 600 D. P1,250

xii. At a sales level of P300,000, Jamaica Company's gross margin is P15,000 less than its contribution margin, its net income is P50,000, and its

selling and administrative expenses total P120,000. At this sales level, its contribution margin would be:

A. P250,000. C. P170,000.

B. P155,000. D. P185,000.

xiii. The Shepherd Company’s president would like to know the estimated fixed and variable components of a particular cost. Actual data for this

cost for four recent periods appear below.

Activity Cost

Period 1 24 P174

Period 2 25 179

Period 3 20 165

Period 4 22 169

Using the least-squares regression method, what is the cost formula for this cost?

A. Y = P 0.00 + P7.55X C. Y = P103.38 + P3.00X

B. Y = P110.44 + P2.70X D. Y = P113.35 + P0.89X

SERAL Company is a manufacturing entity whose total factory overhead costs fluctuate considerably from year to year according to increases and

decrease in the number of direct labor hours worked in the plant. Total factory overhead costs at high and low levels of activity for recent years

follow:

Low High

Direct labor hours 50,000 75,000

Total factory overhead costs P14,250,000 P17,625,000

The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 50,000-hour

level of activity as follows:

Indirect materials (V) P 5,000,000

Rent (F) 6,000,000

Maintenance (M) 3,250,000

Total factory overhead costs P14,250,000

xiv. How much of the P17,625,000 factory overhead cost at the high level of activity consist of maintenance cost?

A. P4,125,000 C. P4,450,000

B. P4,220,000 D. P4,525,000

xv. What total factory overhead costs would you expect the company to incur at an operating level of 70,000 direct labor hours?

A. P16,950,000 C. P13,000,000

B. P13,950,000 D. P10,950,000

In the Omara Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were P223,000. Of this amount, utilities

were P48,000 (all variable) and depreciation was P60,000 (all fixed). The balance of the overhead cost consisted of maintenance cost (mixed). At

100,000 machine hours, maintenance costs were P130,000.

Assume that all of the activity levels mentioned in this problem are within the relevant range.

xvi

. The variable cost for maintenance per machine hour is:

A. P1.30. C. P0.75.

B. P1.44. D. P1.35.

xvii

. The total fixed overhead cost for Omara is:

A. P115,000. C. P 60,000.

B. P130,000. D. P 55,000.

xviii

. If 110,000 machine hours of activity are projected for the next period, total expected overhead cost would be:

A. P256,000. C. P306,625.

B. P263,500. D. P242,500.

xix. The following information was taken from a computer printout generated with the least squares method for use in estimating overhead costs:

Slope 90

Intercept 11400

Correlation coefficient 0.6

Activity variable Direct labor hours

The cost formula is

A. Overhead = P11,400 – P90X C. Overhead = P11,400 + P90X

B. Overhead = P11,400 + (P45 x .6) D. Overhead = P11,400 x .6

xx. The following information pertains to data that have been gathered in the process of estimating a simple least squares regression:

Mean value of the dependent variable 30

Mean value of the independent variable 10

Coefficient of the independent variable 3

Number of observations 12

What is the "a" value for the least squares regression model?

A. 20

B. 6

C. 0

D. The intercept term cannot be computed from the information given.

The House of TROPS Company is a large retailer of sports equipment. An income statement for the company’s Ski Department for a recent quarter

is presented as follows:

Income Statement

For the Quarter Ended March 31

Sales P1,500,000

Less cost of goods sold 900,000

Gross margin 600,000

Less operating expenses:

Selling expenses P300,000

Administrative expenses 100,000 400,000

Net income P 200,000

Skis sell, on the average, for P7,500. Variable selling expenses are P500 per pair of skis sold. The remaining selling expenses are fixed. The

administrative expenses are 20 percent variable and 80 percent fixed. The company does not manufacture its own skis; it purchases them from a

supplier for P4,500 per pair.

A. P 900,000 C. P1,000,000

B. P 920,000 D. P1,020,000

xxii

. Given the cost formula Y = P30,000 + P5X, total cost at an activity level of 16,000 units would be:

A. P 30,000. C. P 80,000.

B. P 46,000. D. P110,000.

Units Sold @ P60/each

1,000 2,000 3,000

Salary P20,000 P30,000 P40,000

Cost of Goods Sold 15,000 30,000 45,000

Cost/Unit of Depreciation 300 150 100

Rent 20,000 20,000 20,000

A. Rent. C. Cost of Goods sold.

B. Salary. D. Depreciation.

A. Rent. C. Cost of Goods sold.

B. Salary. D. Depreciation.

xxv

. Which one does not contain any fixed cost behavior?

A. Rent. C. Cost of goods sold.

B. Salary. D. Depreciation.

xxvi

. If 3,000 units are sold what is the contribution margin?

A. P 75,000. C. P135,000.

B. P105,000. D. P180,000.

xxvii

. What is total fixed cost?

A. P50,000. C. P60,100.

B. P60,000. D. P90,000.

xxviii

. Given the following information, choose the cost and activity that would be used as the high data point in high-low cost estimation:

Costs Activity (hours)

P51,000 40,000

P50,000 41,000

P58,000 42,000

P56,000 43,000

B. P58,000 and 43,000 hours D. P56,000 and 42,000 hours

Use the following simple regression results based on the data from the Madrigal Corporation to answer Question Nos. 29 and 30.

Dependent variable - Machine maintenance costs

Independent variable - Machine hours

Computed values

Intercept P3,500

Coefficient on independent variable P 3.50

Coefficient of correlation 0.856

R2 0.733

xxix. What percentage of the variation in maintenance costs is explained by the independent variable?

A. 85.6% C. 47.3%

B. 95.2% D. 73.3%

xxx. What is the total maintenance cost for an estimated activity level of 20,000 machine hours?

A. P73,500 C. P82,300

B. P78,400 D. P84,750

CVP

xxxi. Green Corporation expects to sell 3,000 plants a month. Its operations manager estimated the following monthly costs:

Variable costs P 7,500

Fixed costs 15,000

What sales price per plant does she need to achieve to begin making a profit if she sells the estimated number of plants per month?

A. P7.51 C. P5.00

B. P7.50 D. P2.50

xxxii. An organization's break-even point is 4,000 units at a sales price of P50 per unit, variable cost of P30 per unit, and total fixed costs of P80,000.

If the company sells 500 additional units, by how much will its profit increase?

A. P25,000 C. P10,000

B. P15,000 D. P12,000

xxxiii

. The Red Lions Brotherhood is planning its annual Riverboat Extravaganza. The Extravaganza committee has assembled the following expected

costs for the event:

Dinner per person P 70

Programs and souvenir per person 30

Orchestra 15,000

Tickets and advertising 7,000

Riverboat rental 48,000

Floor show and strolling entertainment 10,000

The committee members would like to charge P300 per person for the evening’s activities.

Assume that only 250 persons are expected to attend the extravaganza, what ticket price must be charged to breakeven?

A. P420 C. P320

B. P350 D. P390

Fixed expenses P78,000

Unit contribution margin 12

Target net profit 42,000

How many unit sales are required to earn the target net profit?

A. 15,000 units C. 12,800 units

B. 10,000 units D. 20,000 units

xxxv. Carribean Company produces a product that sells for P60. The variable manufacturing costs are P30 per unit. The fixed manufacturing cost is

P10 per unit based on the current level of activity, and fixed selling and administrative costs are P8 per unit. A selling commission of 10% of

the selling price is paid on each unit sold.

The contribution margin per unit is:

A. P24. C. P30.

B. P36. D. P54.

xxxvi. Seal Yard Ornaments sells lawn ornaments for P15 each. Seal's contribution margin ratio is 40%. Fixed costs are P32,000. Should fixed costs

increase 30%, how many additional units will Seal have to produce and sell in order to generate the same net profit as under the current

conditions?

A. 1,600. C. 6,933.

B. 5,333. D. 1,067.

xxxvii. At a break-even point of 5,000 units sold, variable expenses were P10,000 and fixed expenses were P50,000. The profit from the 5,001st unit

would be?

A. P10 C. P15

B. P50 D. P12

xxxviii. Galactica Company has fixed costs of P100,000 and breakeven sales of P800,000. Based on this relationship, what is its projected profit at

P1,200,000 sales?

A. P 50,000 C. P150,000

B. P200,000 D. P400,000

xxxix

. The sales price per unit will increase from P32 to P40. The variable cost per unit will remain at P24, and the fixed costs will remain unchanged

at P400,000. How many fewer units must be sold to break-even at the new sales price of P40 per unit?

A. 25,000 C. 10,000

B. 2,500 D. 12,500

xl. The Hard Company sells widgets. The company breaks even at an annual sales volume of 80,000 units. At an annual sales volume of 100,000

units the company reports a profit of P220,000. The annual fixed costs for the Hard Company are:

A. P 880,000 C. P 800,000

B. P1,100,000 D. P1,000,000

xli. Albatross Company has fixed costs of P90,300. At a sales volume of P360,000, return on sales is 10%; at a P600,000 volume, return on sales

is 20%. What is the break-even volume?

A. P225,000 C. P301,000

B. P258,000 D. P240,000

xlii. An entity has fixed costs of P200,000 and variable costs per unit of P6. It plans on selling 40,000 units in the coming year. If the entity pays

income taxes on its income at a rate of 40%, what sales price must the firm use to obtain an after-tax profit of P24,000 on the 40,000 units?

A. P11.60 C. P12.00

B. P11.36 D. P12.50

xliii. The following is the Lux Corporation's contribution format income statement for last month:

Sales P2,000,000

Less variable expenses 1,400,000

Contribution margin 600,000

Less fixed expenses 360,000

Net income P 240,000

The company has no beginning or ending inventories. A total of 40,000 units were produced and sold last month. What is the company's

degree of operating leverage?

A. 0.12 C. 2.50

B. 0.40 D. 3.30

xliv. Delmar Company has the opportunity to increase its annual sales by P125,000 by selling to a new, riskier group of customers. The uncollectible

expense is expected to be 10%, and collection costs will be 10%. The company’s manufacturing and selling expenses are 70% of sales, and its

effective tax rate is 40%. If Delmar were to accept this opportunity, the company’s after tax profits would increase by

A. P 7,500 C. P12,500

B. P 6,000 D. P15,000

xlv. In 2017 Lucia Company had a net loss of P8,000. The company sells one product with a selling price of P80 and a variable cost per unit of

P60. In 2018, the company would like to earn a before-tax profit of P40,000. How many additional units must the company sell in 2017 than

it sold in 2017? Assume that the tax rate is 40 percent.

A. 1,600 C. 2,000

B. 2,400 D. 5,400

xlvi. Bulusan Company has sales of P400,000 with variable costs of P300,000, fixed costs of P120,000, and an operating loss of P20,000. How

much increase in sales would Bulusan need to make in order to achieve a target operating income of 10% of sales?

A. P400,000 C. P500,000

B. P462,000 D. P800,000

xlvii. The following data apply to Diva Corporation for the year 2017:

Total variable cost per unit P3.50

Contribution margin/sales 30%

Breakeven sales (present volume) P1,000,000

Diva wants to sell an additional 50,000 units at the same selling price and contribution margin per unit. By how much can fixed costs increase

to generate a gross margin equal to 10% of the sales value of the additional 50,000 units to be sold?

A. P 50,000 C. P 67,500

B. P 57,500 D. P125,000

xlviii. Marsman Company had a margin of safety ratio of 20%, variable costs of 60% of sales, fixed costs of P240,000, a break-even point of P600,000,

and an operating income of P60,000 for the current year. What are the current year's sales?

A. P 500,000 C. P 750,000

B. P 600,000 D. P 900,000

xlix. Regal, Inc. sells Product M for P5 per unit. The fixed costs are P210,000 and the variable costs are 60% of the selling price. What would be

the amount of sales if Regal is to realize a profit of 10% of sales?

A. P700,000 C. P525,000

B. P472,500 D. P420,000

l. The following economic data were provided by the corporate planning staff of Heaven, Inc.:

Sales volume 30,000 units

Sales price per unit P30

Unit variable costs:

Variable manufacturing P13

Other variable costs 8

Unit variable costs P21

Unit contribution margin P 8

Fixed costs:

Manufacturing P150,000

Other fixed costs P 50,000

Total fixed costs P200,000

The management is considering installing a new, automated manufacturing process that will increase fixed costs by P50,000 and reduce

variable manufacturing cost by P3 per unit. The management set a target a profit of P70,000 before and after the acquisition of the automated

machine. After installation of the automated machine, what will be the change in the units required to achieve the target profit?

A. 6,667 unit increase C. 3,333 unit decrease

B. 5,667 unit decrease D. 4,333 unit decrease

li. In planning its operations for next year based on a sales forecast of P6,000,000, Herran, Inc. prepared the following estimated costs and

expenses:

Variable Fixed

Direct materials P1,600,000

Direct labor 1,400,000

Factory overhead 600,000 P 900,000

Selling expenses 240,000 360,000

Administrative expenses 60,000 140,000

P3,900,000 P1,400,000

What would be the amount of peso sales at the breakeven point?

A. P2,250,000. C. P4,000,000.

B. P3,500,000. D. P5,300,000.

lii. The Expressive Company currently has fixed cost of P770,500. This cost is expected to increase by P103,500 if the company expands its

production facilities. Currently, it sells its product for P47. The product has a variable cost per unit of P24. How many more units must the

company sell to break even, at the current sales price per unit, than it did to break even prior to the increase in fixed cost?

A. 3,500 C. 4,500

B. 4,000 D. 6,000

liii. The Tanker Company estimated the following data for the coming year:

Fixed manufacturing costs P565,000

Variable production costs per peso of sales

Materials P 0.125

Direct labor 0.150

Variable overhead 0.075

Variable selling costs per peso of sales 0.150

Tanker estimates its sales for the coming year to be P2,000,000.

A. P1,265,000 C. P1,565,000

B. P1,115,000 D. P 700,000

liv. At a sales volume level of 2,250 units, Baluarte Company’s contribution margin is one and one-half of the fixed costs of P36,000. Contribution

margin is 30% How much peso sales should the Baluarte Company sell to earn 10 percent of sales?

A. P270,000 C. P360,000

B. P180,000 D. P540,000

Sales (20,000 units) P360,000

Variable costs 220,000

Contribution margin P140,000

Fixed costs 105,000

Net income P 35,000

Alpine’s management is unhappy with the results and plans to make some changes for next year. If management implements a new marketing

program, fixed costs are expected to increase by P19,200 and variable costs to increase by P1 per unit. Unit sales are expected to increase

by 15 percent.

A. decrease of P21,200 C. increase of P 1,800

B. increase of P13,800 D. increase of P14,800

lvi

. Mercado, Inc. had the following economic data for 2017:

Net sales P400,000

Contribution margin 160,000

Margin of safety 40,000

What is Mercado’s breakeven point in 2017?

A. P360,000 C. P320,000

B. P288,000 D. P 80,000

lvii. Marquez Co. manufactures a single product. For 2017, the company had sales of P90,000, variable costs of P50,000, and fixed costs of

P30,000. Marquez expects its cost structure and sales price per unit to remain the same in 2018; however total sales are expected to jump

by 20%. If the 2018 projections are realized, net income in 2018 should exceed net income in 2017 by

A. 100% C. 20%

B. 80% D. 50%

lviii

. Below is the income statement for Harpo Co. for 2017:

Sales P400,000

Variable costs ( 125,000)

Contribution margin P275,000

Fixed costs ( 200,000)

Profit before tax P 75,000

Assuming that the fixed costs are expected to remain at P200,000 for 2018, and the sales price per unit and variable cost per unit are also

expected to remain constant, how much profit before tax will be produced if the company anticipates 2018 sales rising to 130% of the 2017

level?

A. P 97,500 C. P195,000

B. P157,500 D. P180,000

lix. Almos Corporation produces a product that sells for P10 per unit. The variable cost per unit is P6 and total fixed costs are P12,000. At this

selling price, the company earns a profit equal to 10% of total peso sales. By reducing its selling price to P9 per unit, the manufacturer can

increase its unit sales volume by 25%. Assume that there are no taxes and that total fixed costs and variable cost per unit remain unchanged.

If the selling price were reduced to P9 per unit, the company’s profit would have been

A. P3,000. C. P5,000.

B. P4,000. D. P6,000.

lx. Information concerning the 2017 financial projections of the Silver Company is as follows:

Net sales of P3,000,000.

Fixed costs of P800,000.

P0.65 increase in cost of sales for each peso increase in net sales.

What is the projected cost of sales for 2017?

A. P 950,000 C. P1,050,000

B. P2,750,000 D. P1,850,000

lxi. The Childless Company sells widgets. The company breaks even at an annual sales volume of 75,000 units.

Actual annual sales volume was 100,000 units, and the company reported a profit of P200,000. The annual fixed costs for the Childless

Company are

A. P800,000 C. P200,000

B. P600,000 D. P150,000

Direct materials P36,000

Direct labor 54,000

Factory overhead, all fixed 29,000

Selling expense (35% variable, 65% fixed) 24,000

What unit price would the company have to charge to make P2,250 on a sale of 1,500 additional units that would be shipped out of the

normal market area?

A. P5.10 C. P4.10

B. P5.60 D. P5.00

lxiii. The Mandarin Company's product mix includes P720,000 in sale of X and P640,000 in sale of Y. X's contribution margin is 60% and Y's is 40%

of sales. Fixed costs amount to P505,881. Y's sale at breakeven point should amount to

A. P640,000 C. P529,490

B. P720,000 D. P470,590

lxiv

. Levi’s Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. Had the company increased the sales

price per unit by 10%, reduced fixed costs by 20%, and left variable cost per unit unchanged, what would the new breakeven point in pesos

have been?

A. P 88,000 C. P100,000

B. P 80,000 D. P125,000

lxv. A firm has fixed costs of P200,000 and variable cost per unit of P6. It plans to sell 40,000 units in the coming year. If the firm pays income

taxes on its income at a rate of 40%, what sales price must the firm use to obtain an after-tax profit of P24,000?

A. P11.60 C. P11.36

B. P12.00 D. P12.50

lxvi. Below is the income statement for Blender Co. for 2017:

Sales P400,000

Variable costs (125,000)

Contribution margin P275,000

Fixed costs ( 200,000)

Profit before tax P 75,000

What is the degree of operating leverage for Blender Company for 2017?

A. 3.67 C. 5.33

B. 1.45 D. 1.67

lxvii. Food Factory, Inc. sells loose biscuits for P5 per unit. The fixed costs are P210,000 and the variable costs are 45% of the selling price. What

would be the amount of sales if Food Factory, Inc. were to realize a profit of 15% of sales?

A. P700,000 C. P525,000

B. P472,500 D. P420,000

lxviii. The Opposition Sales Corporation is expecting an increase of fixed costs by P78,750 upon moving their place of business to the downtown

area. The company anticipates that the selling price per unit and the variable expenses will not change. At present, the sales volume necessary

to breakeven is P750,000 but with the expected increase in fixed costs, the sales volume necessary to breakeven would go up to P975,000.

Based on these projections, what were the total fixed costs before the increase of P78,750?

A. P341,250 C. P183,750

B. P262,500 D. P300,000

lxix

. At 40,000 units of sales, Benevolent Corporation had an operating loss of P3.00 per unit. When sales were 70,000 units, the company had a

profit of P1.20 per unit. The number of units to breakeven is

A. 35,000 C. 45,000

B. 52,500 D. 57,647

lxx

. The following information pertains to Hennin Corporation for the year ending December 31, 2017:

Budgeted sales P1,000,000

Breakeven sales 700,000

Budgeted contribution margin 600,000

Cashflow breakeven 200,000

The margin of safety for the Hennin Corporation is:

A. P300,000 C. P500,000

B. P400,000 D. P800,000

lxxi. Balboa, Inc. had the following economic information for the year 2017:

Sales (50,000 units @ P20) P1,000,000

Variable manufacturing costs 400,000

Fixed costs 250,000

Income tax rate 40 percent

Balboa, Inc. budgets its 2018 sales at 60,000 units or P1,200,000. The company anticipates an increased competition; hence, an additional

P75,000 advertising costs is budgeted in order to maintain its sales target for 2018.

What is the amount of peso sales needed for 2018 in order to equal the after-tax income in 2017?

A. P1,125,000 C. P1,325,000

B. P1,187,500 D. P1,387,500

lxxii

. Mauresmo Company developed the following information for the year ended December 31, 2017:

Product A Product B Total

Units Sold 4,000 6,000 10,000

Variable costs 6,000 15,000 21,000

Contribution margin P 6,000 P12,000 18,000

Fixed costs 12,600

Net income P 5,400

If the sales mix changes to 5,000 units of Product A and 5,000 units of Product B, the effect on the company’s break-even point would be

A. to increase it by 200 units. C. to increase it by 1,200 units.

B. to decrease it by 200 units. D. no change.

lxxiii. Menor Company sells two products with the following per unit data:

Standard Deluxe

Selling price/unit P75 P120

Variable costs/unit 45 60

Contribution margin/unit P30 P 60

Sales mix 3 2

If fixed costs are P630,000, the number of standard and deluxe units that Menor must sell to break even is

A. 1,800 standard and 1,200 deluxe. C. 9,000 standard and 6,000 deluxe.

B. 3,600 standard and 2,400 deluxe. D. 21,000 standard and 14,000 deluxe.

lxxiv. The following are projections about the two products of Dorine Company, baubles and trinkets, for the coming year:

Baubles Trinkets

Units Amount Units Amount Total

Sales 10,000 P10,000 7,500 P10,000 P20,000

Costs

Fixed P 2,000 P 5,600 P 7,600

Variable 6,000 3,000 9,000

P 8,000 P 8,600 P16,600

Income before taxes P 2,000 P 1,400 P 3,400

Assuming that the customers purchase composite units of four baubles and three trinkets, the breakeven output for the two products would

be

A. B. C. D.

Baubles 6,909 6,909 5,000 5,000

Trinkets 6,909 5,182 8,000 6,000

Product A: 12 units @ P5.25 sales price; P4.85 variable cost per unit.

Product B: 10 units @ P7.50 sales price; P6.95 variable cost per unit.

Product C: 6 units @ P12.25 sales price; P10.35 variable cost per unit.

A. 98,000 C. 3,500

B. 2,000 D. 4,000

lxxvi. Alexandra Co. provides two products, Velvet and Cotton. Velvet accounts for 60 percent of total sales. The variable costs as a percentage of

selling prices are 60% for Velvet and 85% for Cotton. Total fixed costs are P225,000.

If fixed costs will increase by 30 percent, what amount of peso sales would be necessary to generate an operating profit of P48,000?

A. P1,350,000 C. P1,135,000

B. P 486,425 D. P 910,000

lxxvii. Last month, Zamora Company had an income of P0.75 per unit with sales of 60,000 units. During the current month when the unit sales are

expected to be only 45,000, there is a loss of P1.25 per unit. Both the variable cost per unit and total fixed costs remain constant.

A. P 80,000 C. P360,000

B. P247,500 D. P210,000

lxxviii. Bytes Company is a retailer of video disks. The projected after-tax income for the current year is P120,000 based on a sales volume of 200,000

video disks. Bytes has been selling the disks at P16 each. The variable costs consist of the P10 per unit purchase price of the disks and a

handling cost of P2 per disk. Bytes’ annual fixed costs are P600,000, and Bytes is subject to a 40% income tax rate. Management is planning

for the coming year when it expects that the unit purchase price of the video disks will increase 30%.

Bytes Company’s breakeven point for the current year in number of video disks is

A. 100,000 units C. 50,000 units

B. 150,000 units D. 60,000 units

lxxix. Alonzo Corporation had sales of P120,000 for the month of May. It has a margin of safety ratio of 25 percent, and an after-tax return on sales

of 6 percent. The company assumes its sales being constant every month. If the tax rate is 40 percent, how much is the annual fixed cost?

A. P 36,000 C. P 90,000

B. P432,000 D. P360,000

lxxx. Cultured Company is a manufacturer of its only one product line. It had sales of P400,000 for 2017 with a contribution margin ratio of 20

percent. Its margin of safety ratio was 10 percent.

A. P 72,000 C. P 80,000

B. P288,000 D. P320,000

lxxxi. Glareless Company manufactures and sells sunglasses. The price and cost data are as follows:

Selling price per pair of Sunglasses P25.00

Variable costs per pair of sunglasses:

Raw materials P11.00

Direct labor 5.00

Manufacturing overhead 2.50

Selling expenses 1.30

Total variable costs per unit P19.80

Annual fixed costs:

Manufacturing overhead P192,000

Selling and administrative 276,000

Total fixed costs P468,000

Forecasted annual sales volume (120,000 pairs) P3,000,000

Income tax rate 40%

Glareless Company estimates that its direct labor costs will increase 8 percent next year. How many units will Glareless have to sell next year

to reach breakeven?

A. 97,500 units C. 101,740 units

B. 83,572 units D. 86,250 units

lxxxii. Santos Company is planning its advertising campaign for next year and has prepared the following budget data based on a zero advertising

expenditure:

Normal plant capacity 200,000 units

Sales 150,000 units

Selling price P25 per unit

Variable manufacturing costs P15 per unit

Fixed manufacturing costs P800,000

Fixed selling costs P700,000

An advertising agency claims that an aggressive advertising campaign would enable Santos to increase its unit sales by 20%. What is the

maximum amount that Santos Company can pay for advertising and have an operating profit of P200,000 next year?

A. P100,000 C. P300,000

B. P200,000 D. P550,000

lxxxiii. Adventurous Co. is considering dropping a product. Variable costs are P60.00 per unit. Fixed overhead costs, exclusive of depreciation, have

been allocated at a rate of P3.50 per unit and will continue whether or not production ceases. Depreciation on the equipment is P60,000 a

year. If production is stopped, the equipment can be sold for P270,000, if production continues, however, it will be useless at the end of 1

year and will have no salvage value. The selling price is P100 a unit. Ignoring taxes, the minimum number of units to be sold in the current

year to break even on a cash flow basis is

A. 1,500 units. C. 8,250 units.

B. 6,750 units. D. 9,750 units

lxxxiv. Pansipit Company had a 25 percent margin of safety. Its after-tax return on sales is 6 percent. The company’s income is subject to tax rate of

40 percent. If fixed costs amount to P320,000, how much peso sales did Pansipit make for the year?

A. P1,066,667 C. P1,280,000

B. P1,000,000 D. P 800,000

lxxxv. The management of Mesa Company has performed cost studies and has projected the following annual costs based on 60,000 units of

production and sales:

Total Annual Costs Percent of Variable Portion of Total Annual Costs

Direct material P600,000 100

Direct labor 720,000 80

Mfg. Overhead 400,000 50

Selling costs 192,500 25

What selling price will yield a 15 percent profit from sales of 60,000 units?

A. P41.67 C. P27.30

B. P37.50 D. P35.42

lxxxvi

. The following data relate to Harvester Company which sells a single product:

Unit selling price P 80.00

Purchase cost per unit 55.00

Sales commission 15 % of selling price 12.00

Monthly fixed costs P180,000

The firm’s two salespersons would like to change their compensation from a 15 percent commission to a 7.5 percent commission plus P15,000

each per month in fixed salary. Currently, they only receive commissions as their compensation.

At what sales volume in units would the two cost structures be indifferent?

A. 2,500 units C. 4,000 units

B. 3,000 units D. 5,000 units

lxxxvii. MultiFrame Company has the following revenue and cost budgets for the two products it sells:

Plastic Frames Glass Frames

Sales price P10.00 P15.00

Direct materials ( 2.00) ( 3.00)

Direct labor ( 3.00) ( 5.00)

Fixed overhead ( 3.00) ( 2.75)

Net income per unit P 2.00 P 4.25

Budgeted unit sales 100,000 300,000

The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgeted at P975,000. Assume that the

company plans to maintain the same proportional mix.

The total number of units that MultiFrame needs to produce and sell in order to break even is

A. 150,000 units C. 153,947 units

B. 100,000 units D. 300,000 units

lxxxviii. During 2017, St. Paul Lab supplied hospitals with a comprehensive diagnostic kit for P120. At a volume of 80,000 kits, St. Paul had fixed costs

of P1,000,000 and operating income before income taxes of P200,000. Because of an adverse legal decision, St. Paul’s 2018 liability insurance

increased by P1,200,000 over 2017. Assuming the volume and other costs are unchanged, what should the 2018 price be if St. Paul is to make

the same P200,000 operating income before income taxes?

A. P120 C. P150

B. P135 D. P240

lxxxix

. The following data relate to Herbert Company which sells a single product:

Unit selling price P 20.00

Purchase cost per unit 11.00

Sales commission, 10% of selling price 2.00

Monthly fixed costs P80,000

The firm’s salespersons would like to change their compensation from a 10 percent commission to a 5 percent commission plus P20,000 per

month in salary. Currently, they only receive commissions as their compensation.

The change in compensation plan should change the monthly breakeven point by

A. 1,071 Increase C. 1,538 Increase

B. 1,071 Decrease D. 1,538 Decrease

xc

. The manager of Naughty Food Company reviewed the following data:

Fruits Meat Canned Products

Contribution margin ratio 40% 50% 40%

Sales mix in pesos 20% 30% 50%

Fixed costs, P1,290,000 per month.

The breakeven sales for each month is

A. P1,677,000 C. P4,500,000

B. P3,000,000 D. P6,000,000

xci. The Oregano Watch Company manufactures a line of ladies’ watches which are sold through discount houses. Each watch is sold for P1,500;

the fixed costs are P3,600,000 for 30,000 watches or less; variable cost is P900 per watch.

A. 2.0X C. 0.5X

B. 5.0X D. 0.2X

xcii. Duke, Inc. owns and operates a chain of food centers. The management is considering installing machines that will make popcorn on the

premises. These machines are available in two different sizes with the following details:

Economy Regular

Annual capacity 20,000 50,000

Costs: Annual machine rental P60,000.00 P82,500.00

Popcorn cost per box 3.90 3.90

Cost of each box 0.80 0.80

Other variable cost per box 6.60 4.20

The level of output in boxes at which the Economy and the Regular would earn the same profit (loss) is

A. 20,000 boxes C. 15,000 boxes

B. 9,375 boxes D. 12,500 boxes

xciii. The Harper Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for P7.50 each,

and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to break even. The net income last

year was P5,040. Harper’s expectations for the coming year include the following:

1. The sales price of the T-shirts will be P9

2. Variable cost to manufacture will increase by one-third

3. Fixed costs will increase by 10%

4. The income tax rate of 40% will be unchanged

The selling price that would maintain the same contribution margin rate as last year is

A. P 9.00 C. P10.00

B. P 8.25 D. P 9.75

xciv. During the month of June, Armani Corporation produced 12,000 units and sold them for P20 per unit. Total fixed costs for the period were

P154,000, and the operating profit was P26,000. The variable cost per unit for June was

A. P4.50 C. P6.00

B. P5.00 D. P7.17

xcv. Stone Company plans to sell 400,000 laundry hangers. The fixed costs are P600,000, and the variable cost is 60% of the selling price. If the

company wants to realize a profit of P120,000, the selling price of each laundry hanger must be

A. P2.50 C. P4.50

B. P3.75 D. P5.00

xcvi. The unit contribution margin of Product A is P20 and of Product B is P16. If six units of Product A and eight units of Product B can be produced

per machine hour, the contribution margin of the products per machine hour is

A. Product A, P160; Product B, P96 C. Product A, P3.33; Product B, P2.00

B. Product A, P120; Product B, P128 D. Product A, P32.00; Product B, P30.00

xcvii. The Bittersweet Company is a wholesale distributor of candy. The company services various grocery, convenience, and drug stores in Metro

Manila. Small, but steady growth in sales, has been achieved by the company over the past few years while candy prices have been increasing.

The company is formulating its plans for the coming fiscal year. Presented below are the data used to project the current year’s after-tax net

income of P110,400.

Average selling price P4.00 per box

Average variable costs

Cost of candy P2.00 per box

Selling expenses 0.40 per box

Total P2.40 per box

Selling P 169,000

Administrative 280,000

Total P 440,000

Expected annual sales volume (390,000 boxes) P1,560,000

The manufacturers of candies have announced that they will increase prices of their products an average of 15% in the coming year due to

increases in raw material (sugar, cocoa, peanuts, etc.) and labor costs. Bittersweet Company expects that all other costs will remain at the

same rates or levels as the current year. Bittersweet is subject to 40 percent tax rate.

If net income after taxes would remain the same after the cost of candy increases but no increase in the sales price is made, how many boxes

of candy must Bittersweet sell?

A. 480,000 C. 400,000

B. 27,600 D. 29,300

xcviii. Larz Company produces a single product. It sold 25,000 units last year with the following results:

Sales P625,000

Variable costs P375,000

Fixed costs 150,000 525,000

Net income before taxes P100,000

Income taxes 40,000

Net income P 60,000

In an attempt to improve its product in the coming year, Larz is considering replacing a component part in its product that has a cost of P2.50

with a new and better quality costing P4.50 per unit. A new machine will also be needed to increase plant capacity. The machine would cost

P18,000 with a useful life of 6 years and no salvage value. The company uses straight-line depreciation method on all plant assets.

If Larz wishes to maintain the same contribution margin ratio after implementing the changes, what selling price per unit of product must it

charge next year to cover the increased material costs?

A. P27.00 C. P25.00

B. P32.50 D. P28.33

xcix. BM Motors, Inc. employs 40 sales personnel to market its line of economy automobiles. The average car sells for P1,200,000 and a 6%

commission is paid to the salesperson. BM Motors is considering a change to a commission arrangement that would pay each salesperson a

salary of P24,000 per month plus a commission of 2% of the sales made by that salesperson.

The amount of total car sales at which the two expense structures would be indifferent is

A. P22,500,000 C. P30,000,000

B. P24,000,000 D. P12,000,000

c. Round Company is a grocery store that is currently open only Monday through Saturday. Round Company is considering opening on Sundays.

The annual incremental costs of Sunday openings are estimated at P31,200. Round’s gross margin on sales is 25 percent. Round estimates

that 75 percent of its Sunday sales to customers would be made on other days if the store were not open on Sundays.

The one-day volume of Sunday sales that would be necessary for Round to attain the same weekly operating as the current six-day week is

A. P2,400 C. P9,600

B. P3,200 D. P9,984

ci. Ailu Company has the following operating data for its manufacturing operations:

Unit selling price P 250

Unit variable cost 100

Total fixed costs 840,000

The company’s decision to increase the wages of hourly workers will increase the unit variable cost by 10 percent. Increases in the salaries

of factory supervisors and property taxes for the factory will increase fixed costs by 4 percent. If sales price is held constant, the next break-

even point for Ailu Company will be

A. Increased by 640 units. C. Decreased by 640 units.

B. Increased by 400 units. D. Increased by 800 units.

cii. Solar Company sells two products, Biggs and Boggs. Last year, Solar Company sold 12,000 units of Biggs and 24,000 units of Boggs.

Product Unit Selling Price Unit Variable Cost Unit Contribution Margin

Biggs P120 P80 P40

Boggs 80 60 20

Assuming that last year’s fixed costs totaled P910,000, what was Solar Company’s composite break-even point?

A. 34,125 C. 11,375

B. 27,302 D. 9,101

ciii. River and Co., maker of quality pipes, has experienced a steady growth in sales for the past five years. However, increase in competition has

led River Co. to believe that an aggressive advertising campaign will be necessary next year to maintain the company’s present growth.

To prepare for next year’s advertising campaign, the company’s accountant has prepared and presented the management with data for the

current year, 2017, as presented below:

Cost Schedule

Variable costs:

Direct labor P 80.00/pipe

Direct materials 32.50/pipe

Variable overhead 25.00/pipe

Total variable costs P137.50/pipe

Fixed costs:

Manufacturing P 250,000

Selling 400,000

Administrative 700,000

Total fixed costs P1,350,000

Expected sales, 2017 (20,000 units) P5,000,000

Tax rate: 40%

The company has set the sales target for 2018 at a level of P5,500,000 (or 22,000 pipes).

If an additional P112,500 have to be spent for advertising in 2018, what is the required sales level in pesos to equal 2017’s after-tax income?

A. P4,750,000 C. P5,250,000

B. P5,750,000 D. P4,250,000

civ. Adobe Company sold 100,000 units of its product at P20 per unit. Variable costs were P14 per unit, consisting of manufacturing costs of P11

and selling costs of P3. Fixed costs, which were incurred uniformly throughout the year, amounted to P792,000 (manufacturing costs of

P500,000 and selling expenses of P292,000). There had been no beginning or ending inventories.

If labor costs comprise of 50 percent variable costs and 20 percent of fixed costs, a 10 percent increase in wages and salaries would increase

the number of units required to break even to

A. 152,423 C. 143,875

B. 175,617 D. 129,938

cv. Mellow, Inc. sells its single product for P40 per unit. Mellow purchases the product for P20. The salespeople receive a salary plus a

commission of 5% of sales. Last year the corporation’s net income was P100,800. The corporation is subject to 30% income tax rate. The

fixed costs of the company are:

Advertising P124,000

Rent 60,000

Salaries 180,000

Other fixed costs 32,000

Total P396,000

The company is considering changing the compensation plan for sales personnel. If the organization increases the commission to 10% of

revenues and reduces salaries by P80,000, what revenues must the organization have to raise in order to earn the same net income as last

year?

A. P1,600,000 C. P1,350,000

B. P1,150,000 D. P1,630,000

cvi. Tactless Manufacturing Company produces two products for which the following data have been tabulated. Fixed manufacturing cost is

applied at a rate of P1.00 per machine hour.

Per Unit XY-7 BD-4

Selling price P4.00 P3.00

Variable manufacturing cost P2.00 P1.50

Fixed manufacturing cost P0.75 P0.20

Variable selling cost P1.00 P1.00

The sales manager has had a P160,000 increase in the budget allotment for advertising and wants to apply the money to the most profitable

product. The products are not substitutes for one another in the eyes of the company’s customers.

The manager may devote the entire P160,000 to increased advertising for either XY-7 or BD-4.

Suppose Tactless has only 100,000 machine hours that can be made available to produce additional units of XY-7 and BD-4. If the potential

increase in sales units for either product resulting from advertising is far in excess of this production capacity, which product should be

advertised and what is the estimated increase in contribution margin earned?

A. Product XY-7 should be produced, yielding a contribution margin of P75,000.

B. Product XY-7 should be produced, yielding a contribution margin of P133,333.

C. Product BD-4 should be produced, yielding a contribution margin of P187,500.

D. Product BD-4 should be produced, yielding a contribution margin of P250,000.

cvii. Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for this product are P1,000,000 for less than

500,000 units of output and P1,500,000 for 500,000 or more units of output. The contribution margin percentage is 35%. How many units

of this product must be sold to earn a target operating income of P1 million?

A. 366,667 C. 476,190

B. 380,952 D. 256,410

cviii. Care Company sold 100,000 units of its product at P20 per unit. Variable costs are P14 per unit, consisting of manufacturing costs of P11 and

selling costs of P3. Fixed costs, which are incurred uniformly throughout the year, amount to P792,000 (manufacturing costs of P500,000

and selling costs of P292,000). There were no beginning or ending inventories.

If labor costs are 50% of variable costs and 20% of fixed costs, a 10% increase in wages and salaries would increase the number of units

required to breakeven (in fraction form) to

A. 807,840/5.3. C. 807,840/14.7.

B. 831,600/5.78. D. 831,600/14.28.

Question Nos. 109 through 113 are based on the following:

Anilao Ski Company recently expanded its manufacturing capacity to allow it to product up to 15,000 pairs of cross-country skis of either the

mountaineering model or the touring model. The sales department assures management that it can sell between 9,000 and 13,000 pairs (units) of

either product this year. Because the models are very similar, Anilao Ski will produce only one of the two models. The following data were compiled

by the accounting department.

Mountaineering Touring

Selling price per unit P88.00 80.00

Variable cost per unit 52.80 2.80

Fixed costs will total P369,600 if the mountaineering model is produced but will be only P316,800 if the touring model is produced. Anilao Ski

Company is subject to a 40% income tax rate.

cix. If Anilao Ski Company desires an after-tax net income of P24,000, how many pairs of touring model skis will the company have to sell?

A. 13,118 C. 13,853

B. 12,529 D. 4,460

cx. The total sales revenue at which Anilao Ski Company would make the same profit or loss regardless of the ski model it decided to produce is

A. P880,000 C. P924,000

B. P422,400 D. P686,400

cxi. How much would the variable cost per unit of the touring model have to change before it had the same breakeven point in units as the

mountaineering model?

A. P2.68/unit increase C. P5.03/unit decrease

B. P4.53/unit increase D. P2.97/unit decrease

cxii

. If the variable cost per unit of touring skis decreases by 10%, and the total fixed cost of touring skis increases by 10%, the new breakeven

point will be

A. 10,730 pairs

B. 13,007 pairs

C. 12,812 pairs

D. Unchanged from 11,648 pairs because the cost changes are equal and offsetting

cxiii

. If the Anilao Ski Company sales department could guarantee the annual sale of 12,000 skis of either model, Anilao would

A. Produce touring skis because they have a lower fixed cost.

B. Produce only mountaineering skis because they a lower breakeven point.

C. Produce mountaineering skis because they are more profitable.

D. Be indifferent as to which model is sold because each model has the same variable cost per unit.

Almo Company manufactures and sells adjustable canopies that attach to motor homes and trailers. The market covers new unit purchases as well

as replacement canopies. Almo developed its 2017 business plan based on the assumption that canopies would sell at a price of P400 each. The

variable costs for each canopy were projected at P200, and the annual fixed costs were budgeted at P100,000. Almo’s after–tax profit objective

was P240,000; the company’s effective tax rate is 40 percent.

While Almo’s sales usually rise during the second quarter, the May financial statements reported that sales were not meeting expectations. For the

first five months of the year, only 350 units had been sold at the established price, with variable costs as planned, and it was clear that the 2017

after-tax profit projection would not be reached unless some actions were taken. Almo’s president assigned a management committee to analyze

the situation and develop several alternative courses of action. The following mutually exclusive alternatives, labeled A, B, and C, were presented

to the president.

Reduce the sales price by P40. The sales organization forecast that with the significantly reduced sales price, 2,700 units can be sold during the

remainder of the year. Total fixed and variable unit costs will stay as budgeted.

Lower the variable costs per unit by P25 through the use of less expensive materials and slightly modified manufacturing techniques. The sales

price will also be reduced by P30, and sales of 2,200 units for the remainder of the year are forecast.

Cut fixed costs by P10,000, and lower the sales price by 5 percent. Variable costs per unit will be unchanged. Sales of 2,000 units are expected for

the remainder of the year.

cxiv.Assuming no changes were made to the selling price or cost structure, how many units must Almo sell to break even?

A. 167 C. 500

B. 250 D. 1,700

cxv.Assuming no changes were made to the selling price or cost structure, how many units must Almo sell to achieve its after-tax profit objective?

A. 1,250 C. 2,000

B. 1,700 D. 2,500

cxvi.If management decides to reduce the selling price by P40, what will Almo's after-tax profit be?

A. P157,200 C. P241,200

B. P160,800 D. P301,200

cxvii.If the management can reduce the variable cost per unit by P25 through the use of less expensive materials and slightly modified manufacturing

techniques, with the sales price reduced by P30, and sales of 2,200 units for the remainder of the year are forecast, the amount of expected

income for the year was:

A. P239,400 C. P241,200

B. P204,000 D. P399,000

cxviii.How much would be the expected income for the year if the management cut fixed costs by P10,000, and lower the sales price by 5 percent,

with variable costs per unit unchanged and sales of 2,000 units are expected for the remainder of the year?

A. P239,400 C. P241,200

B. P204,000 D. P399,000

cxix.If the sales price is reduced by 6.25 percent starting June 1, an analysis indicates that 2,500 unit sales can be made if the company has to spent

for additional advertising. What is the maximum amount of advertising cost that the company can spend and still the profit objective is

achieved?

A. P35,000 C. P15,000

B. P22,500 D. P 7,500

i . Answer: B

Monthly budgeted fixed cost (72,000/12) P 6,000

Variable cost based on actual units:

Number of hours allowed

(96,000 x 5/60)= 8,000 hours

Variable cost: 8,000 x 1.60 12,800

Budgeted overhead cost P18,800

ii . Answer: C

The solution can be made using an equation approach:

a = y – bX

(P2,300,000 – 50,000X)1.25 = P2,800,000 – 60,000X

2,875,000 – 62,500X = 2,800,000 – 60,000X

2,500X = 75,000

X = P30

iii . Answer: B

Variable factory overhead (150,000/60,000) P2.50

Fixed overhead [240,000/(60,000 x 0.80) 5.00

Total rate P7.50

Note: Variable rate per activity unit is constant. Fixed overhead per unit behaves inversely with the activity-

unit level.

iv . Answer: D

b = (853.560 – 723,060) ÷ (540,000 – 450,000)

130,500 ÷ 90,000 P 1.45

Y = 70,560 + 1.45b

= 70,560 + (470,000 x 1.45) P752,060

v . Answer: D

∑X = 36

∑Y = 2,320

∑XY = 22,600

∑X2 = 404

∑Y = na + b∑X

∑XY = as + b∑X2

2,320 = 4a + 36b

22,600 = 36a + 404b

20,880 = 36a + 324b

1,720 = 80b

b = 21.50

2,320 = 4a + 774

4a = 1,546

a = 386.50

Y = 386.50 + 21.50 X

Y = 386.50 + (10 x 21.50)

Y = 601.50

vi . Answer: C

4X = 42,500 – 17,500

4X = 25,000

X = 6,250

vii . Answer: C

b = (31,000 – 27,000) ÷ (15,000 – 12,500)

4,000 ÷ 2,500

b = 1.6

a = 31,000 - (15,000 x 1.60)

a = 7,000

Y = 7,000 + 1.60X

viii . Answer: B

∆Y = 100 x 3 P300

Within a relevant range, the amount of total fixed cost remains constant at P4,000. The only cost that will

change in total is variable cost because every additional hour will add P3 to total costs.

ix . Answer: A

Unit level costs: P12000 ÷ 3000 x 800 P3,200

Product level costs: P1,000 ÷ 40 x 4 100

Customer level costs: P3,500 ÷ 10 350

Cost of Job 002 P3,650

Within a relevant range, the amount of fixed cost remain constant at P4,000. The only cost that will charge in total

is variable cost between every additional hour will be accompanied by an increase of P3.

x . Answer: B

Total number of minutes used after completing 8 units:

(10 × .7 × .7 × .7) 3.43

xi . Answer: C

Cumulative average after completing 4 units:

1,500 × .9 × .9 P1,215

Less total costs of first 2 units 1,500 x 0.9 x 2 2,700

xii . Answer: D

Net income P 50,000

Add: selling and admin. Expense 120,000

Gross Margin 170,000

Add: excess of contribution margin over gross margin 15,000

Contribution Margin P185,000

xiii . Answer: B

∑X = 91

∑Y = 687

∑XY = 15,669

∑X2 = 2,085

687 = 4a + 91b

15,669 = 91a + 2,085b

15,629.25 = 91a + 2,070.25b

39.75 = 14.75b

b = P2.70

687 = 4a + 245.25

4a = 441.75

a = P110.44

Y = P110.44 + P2.70X

xiv . Answer: A

Maintenance cost at high level:

Total factory overhead P17,625,000

Less: Indirect materials (variable) 75,000 x P100 ( 7,500,000)

Rent (fixed) ( 6,000,000)

Amount of maintenance cost P 4,125,000

xv . Answer: A

Analysis of maintenance cost

b = (P4,125,000 – P3,250,000) ÷ (75,000 – 50,000)

b = 875,000 ÷ 25,000

b = P35

a = P1,500,000

Rent 6,000,000

Maintenance 500,000 + (70,000 x 35) 3,950,000

Total Overhead costs P16,950,000

xvi . Answer: C

b = (P130,000 – P115,000) ÷ (100,000 – 80,000)

P15,000 ÷ 20,000 P0.75

xvii . Answer: A

a = P130,000 – (10,000 x P0.75)

a = P55,000

Maintenance Cost P 55,000

Depreciation 60,000

Total P115,000

xviii . Answer: B

Utilities 110,000 x P0.6 P 66,000

Maintenance P55,000 + (110,000 x P0.75) 137,500

Depreciation 60,000

Total P263,500

xix . Answer: C

Slope represents the variable rate.

Intercept represents total fixed cost

xx . Answer: C

Y = 12 x 30

= P360

=0

xxi . Answer: D

Number of units sold = 1,500,000 ÷ 7,500 200

Variable selling expenses 200 x 500 P100,000

Variable administrative expenses 0.20 x 100000 20,000

Total P1,020,000

xxii . Answer: D

The total cost at an activity level of 16,000 units is determined as follows:

Total cost = P30,000 + (16,000 units x P5.00 per unit) P110,000

xxiii . Answer: C

Cost of Goods sold is P15 per unit. A variable cost is one which is constant per unit.

Unit sales Unit Variable Cost

1,000 15,000 ÷ 1,000 P15

2,000 30,000 ÷ 2,000 P15

3,000 45,000 ÷ 3,000 P15

xxiv . Answer: B

The salary is a mixed cost. Notice that the cost per unit and in total for each volume level are not the same. There

is a variable cost component of P10 per unit and a fixed cost component of P10,000. Within a relevant range, unit

variable cost as well as total fixed cost are constant.

Variable cost (30,000 – 20,000) ÷ (2,000 – 1,000) P 10

Fixed cost 20,000 – (1,000 x 10) P10,000

xxv . Answer: C

Cost of Goods Sold is a variable cost. Rent and Depreciation are fixed costs. Salary is a mixed cost that has some

fixed cost behavior.

xxvi . Answer: B

Sales P60 * 3000 units P180,000

Total Variable Cost 75,000

Contribution Margin P105,000

Cost of goods sold P45,000

Variable salary cost 30,000

Total P75,000

xxvii . Answer: B

Rent P20,000

Depreciation 30,000

Fixed salary cost 10,000

Total fixed costs P60,000

xxviii . Answer: C

To analyze mixed cost using high-low method, the analyst always identifies and uses the lowest and the highest

levels of activities. The reason is that the activity presumably causes costs, so the analyst would like to use data

that reflects the greatest possible variation in activity.

xxix . Answer: D

The question does not require a computation. R2 (goodness of fit) indicates the percentage of the variation in the

dependent variable (cost) that is explained by variation in the independent variable (activity). The adjusted R 2

varies from zero to 100%, and the higher the percentage, the better.

xxx . Answer: A

Variable cost 20,000 x 3.5 P70,000

Fixed cost 3,500

Total cost P73,500

xxxi . Answer: B

Contribution Margin = Fixed costs

= P15,000

= Desired Minimum Sales Price

xxxii . Answer: C

Unit contribution margin (P50 - P30) P 20.00

Additional profit (500 x P20) P10,000

After the break-even level, the amount of profit equals the unit contribution margin multiplied by the number of

units sold in excess of break-even units.

The candidates should remember that the profit increases by the amount of contribution margin brought by

additional units sold.

xxxiii . Answer: A

Cost of dinner P 70.00

Favors and program 30.00

Fixed costs

(15,000 + 7,000 + 48,000 + 10,000)/250 320.00

Cost to be charged P420.00

xxxiv .Answer: B

The number of units required to earn the target profit is equal to the sum of fixed expenses and the target profit

divided by the unit contribution margin. The number of units required to earn the target net profit is:

(P78,000 + P42,000) ÷ P12 10,000

xxxv . Answer: A

Selling Price P 60

Less: Variable Manufacturing Cost ( 30)

10% Commission ( 6)

xxxvi .Answer: A

Current break-even:

Pesos: (P32,000 ÷ 0.40) P80,000

Units: [P32,000 ÷ P6) 5,333

Contribution margin per unit: P15 x 0.40P 6.00

(P32,000 x 0.3) P6 1,600

Alternative solution:

New breakeven units (P32,000 x 1.3) ÷ P6 6,933

Less current breakeven units 5,333

Increase in breakeven units 1,600

xxxvii . Answer: A

The amount of contribution margin per unit is constant within a relevant range. The amount of profit is increased

by the amount of unit contribution margin.

fixed cost ÷ breakeven unit sales 50,000 ÷ 5,000 P10.00

At breakeven point, the profit is zero. Therefore, the profit at a level of 5,001 units will be P10 which is the amount

of contribution provided by the unit (one unit) in excess of breakeven point.

xxxviii Answer: A

CMR = Fixed cost/Sales

= 100,000/800,000 = 12.50%

The amount of sales that provides profit should be the sales revenues above the break even sales.

Alternative solution:

Total contribution margin 1,200,000 x 0.125 P150,000

Fixed costs 100,000

Profit P 50,000

xxxix .Answer: A

Current unit contribution margin (P32 – P24) P8

Current break-even units (P400,000 ÷ P8) 50,000

New unit contribution margin (P40 - P24) P16

New break-even units (400,000 ÷ 16) 25,000

Net decrease in breakeven units

(50,000 – 25,000) 25,000

xl . Answer: A

CM per unit: 220,000 / (100,000 – 80,000) 11.00

Fixed costs: 80,000 x 11 P880,000

Therefore: TCM Units = UCM

xli . Answer: B

TCM Sales = CMR

Change in TCM: (600,000*0.2) – (360,000*0.1) 84,000

CMR: Increase in TCM ÷ Increase in Sales

84,000 ÷ 240,000 35%

xlii . Answer: C

Before-tax profit 24,000 ÷ 0.6 40,000

Add fixed cost 200,000

Total contribution margin 240,000

Selling Price = 6 + (240,000 ÷ 40,000) 12.00

xliii . Answer: C

The company's degree of operating leverage is determined as follows:

Degree of operating leverage = Contribution margin ÷ Net income

Degree of operating leverage = P600,000 ÷ P240,000 = 2.50

xliv . Answer: A

Increase in sales 125,000

Less variable costs and expenses

0.90 x 125,000 112,500

Additional profit before tax 12,500

Less additional tax 0.40 x 12,500 5,000

Additional profit 7,500

xlv . Answer: B

Additional profit ÷ UCM = additional unit sales

= (40,000 + 8,000) ÷ (80-60)

= 2,400 units

xlvi . Answer: A

Total peso sales required 120,000 ÷ (0.25 – 0.1) 800,000*

Less prior sales 400,000

Required increase in sales 400,000

S = [FC + (ROSS)] CMR

(CMR S) = [FC + (ROSS)]

(CMR S) - (ROSS) = FC

(CMR – ROS) S = FC

S = FC (CMR – ROS)

xlvii . Answer: A

Contribution margin 50,000 x (5-3.50) 75,000

Less: additional profit (250,000 x 0.10) 25,000

Additional fixed costs 50,000

xlviii . Answer: C

A shorter calculation of finding the amount of sales is to divide breakeven sales by (1 – MSR)

Sales = P600,000 (1 – 0.2) P750,000

Profit margin = 20% x 40% 8%

Sales = Profit ÷ Profit margin

xlix . Answer: A

Peso sales = FC/(CMR - ROS)

= P210,000/(0.40 - 0.10) P700,000

CMR = 40%

S = P210,000 + 0.10S

0.40

0.40S - 0.10S = P210,000

S = P210,000/(0.40 – 0.10)

S = P700,000

l . Answer: C

Current number of units required to earn the target net profit:

[(P200,000 + P70,000) ÷ P9] 30,000

the number of units required to earn the target

net profit will be:

((P250,000 + P70,000) ÷ P12) 26,667

li . Answer: C

CMR= 100% - (3.9 ÷ 6.0) = 35%

BES = 1,400,000 ÷ .35 4,000,000

lii . Answer: C

New break-even point: P874,000 ÷ P23 38,000

Current break-even point in units: P770,500 ÷ P23 33,500

Increase in units: 38,000 - 33,500 4,500

Alternative solution: (P103,500 ÷ P23) 4,500

liii . Answer: A

The estimated cost of goods sold

= P565,000 + 0.35S*

*Sum of all percentages for variable production costs

= P1,265,000

liv . Answer: B

Peso sales required to earn 10% of sales;

FC/(CMR – ROS)

= P36,000/(0.30-0.10)

= 180,000

lv . Answer: A

Revised contribution margin 20,000 x 1.15 x (7-1) 138,000

Fixed cost (105,000 + 19,200) 124,200

Revised profit 13,800

Prior profit 35,000

Decrease in profit 21,200

lvi . Answer: A

Margin of Safety = Budgeted sales – Breakeven sales

Margin of Safety: P400,000 – P40,000 P360,000

lvii . Answer: B

DOL at P90,000 sales:

Sales 90,000

Variable costs 50,000

Total Contribution margin 40,000

Fixed costs 30,000

Profit 10,000

DOL = TCM/OP

= 40,000/10,000 4 times

4 x 20% = 80%

lviii . Answer: B

2006 DOL = 275,000/75,000 3.67

Percentage Increase in profit, 2007 = 3.67 x 30% 110%

2007 Profit = 75,000 +(75,000 x 1.10) P157,500

lix . Answer: A

Peso sales 12,000/(0.40 – 0.1) P40,000

Unit sales P40,000/10 4,000

Increased units 4,000 x 1.25 5,000

Revised contribution margin 5,000 x (9 – 6) P15,000

Less fixed cost 12,000

Revised profit P 3,000

lx . Answer: B

Projected cost of sales:

P800,000 + (P3,000,000 x 0.65) P2,750,000

lxi . Answer: B

Unit CM = Change in Profit ÷ Change in Sales

= 200,000 ÷ (100,000 – 75,000)

=8

75,000 x 8 = 600,000

lxii . Answer: B

Unit cost:

Materials (P36,000 ÷ 24,000) P1.50

Labor (P54,000 ÷ 24,000) 2.25

Variable selling expense 0.35

Variable unit cost P4.10

Required profit (2,250 ÷ 1,500) 1.50

Required minimum selling price P5.60

lxiii . Answer: D

Composite ratio:

X: 640,000 ÷ (720,000 + 640,000) 47.059%

Y: 720,000 ÷ (720,000 + 640,000) 52.941%

(.52941 × .60) + (.47059 × .40) 0.505882

(505,881 ÷ 0.505882) P1,000,000

lxiv . Answer: A

Sales (500,000 x 1.10) 550,000

Variable cost 300,000

Contribution margin 250,000

Original fixed costs:

500,000 – 300,000 – 150,000 = 50,000

New fixed cost = 50,000 x 0.80 = 40,000

Breakeven sales = 40,000/0.4545 = P88,000

lxv . Answer: B

Before-tax profit (24,000 ÷ 0.6) P 40,000

Add fixed costs 200,000

Total contribution margin P240,000

Variable cost per unit 6.00

Selling price P12.00

lxvi . Answer: A

DOL = CM/OP

= 275,000/75,000

= 3.67 times

lxvii . Answer: C

Peso sales : FC ÷ (CMR - Profit Margin)

= P210,000 ÷ (0.55 - 0.15)

= P525,000

lxviii . Answer: B

CMR: Change in Fixed Costs ÷ Change in Breakeven Sales

78,750 ÷ (975,000 – 750,000)

0.35

750,000 x 0.35 262,500

The increase in fixed costs of P78,750 equals the increase in contribution margin in order to continue at breakeven

sales.

lxix . Answer: D

UCM = (70,000 x 1.20)+(40,000 x 3)

70,000 – 40,000

= P6.80

= 70,000(6.80 – 1.20)

= P392,000

BEU = 392,000/6.80

= 57,647

lxx . Answer: A

Margin of safety in peso sales = Budgeted sales – Breakeven sales

Margin of safety = P1M – P.7M P300,000

lxxi . Answer: A

2006 Sales 1,000,000

Advertising Cost (75000 ÷ .6) 125,000

Required 2007 peso sales 1,125,000

lxxii . Answer: A

Revised WACM (0.5 x 1.50) + (0.5 x 2) 1.75

Original WACM (0.4 x 1.50) + (0.6 x 2) 1.80

Revised Breakeven units 12,600/1.75 7,200

Original Breakeven units 12,600/1.80 7,000

Increase in breakeven units 200

lxxiii . Answer: C

WACM = (30 x 0.6) + (60 x 0.4) P42

Breakeven units: 630,000/42 15,000

Breakdown:

Product Standard 15,000 x 0.6 9,000

Product Deluxe 15,000 x 0.4 6,000

lxxiv . Answer: B

WACM = (4/7 x 0.40)+(3/7 x 0.93 = P0.62857

BE units = 7,600/0.62857 = 12,091

Baubles = 12,091 x 4/7 = 6,909

Trinkets = 12,091 x 3/7 = 5,182

lxxv . Answer: C

Total sales revenue per composite sales:

(12 x P5.25) + (10 x P7.50) + (6 x P12.25) P211.50

Total variable cost per composite sales:

(12 x P4.85) + (10 x P6.95) + (6 x P10.35) P189.80

Total contribution margin per composite sales

(P211.50 - P189.80) P 21.70

Composite breakeven point

P75,950 ÷ P21.70 3,500

lxxvi . Answer: C

WACMR = (.6 x .4) + (.4 x .15) 30%

Fixed Costs = 225000 x 1.3 P 292,500

Sales (292500 + 48000) ÷ .3 P1,135,000

lxxvii . Answer: C

UCM = (60,000 x 0.75)+(45,000 x 1.25)

60,000 – 45,000

= 6.75

lxxviii . Answer: B

BEV = 600,000 P150,000

16 – 12

lxxix . Answer: B

CMR = Before Tax Profit Margin

M/S Ratio

= (0.06 ÷ 0.6) ÷ .25

= 40%

Annual FC = 36,000 x 12 P432,000

lxxx . Answer: A

Profit Margin = 20% x 10% = 2%

Profit = 400,000 x 2% = 8,000

Fixed Costs = CM - Profit

Fixed Costs = (400,000 x 20%) – 8,000 P72,000

lxxxi . Answer: A

Revised UCM = 25 – 19.80 – (5 x 0.08) P4.80

BEU = 468,000/4.80 97,500

lxxxii . Answer: A

The Company projected zero profit based on zero advertising expenditure.

Additional CM (30,000 units @ 10) P300,000

Less: Required profit 200,000

Maximum advertising cost P100,000

lxxxiii . Answer: B

Cash-flow breakeven: 270,000 ÷ (100-60) 6,750

lxxxiv . Answer: A

CMR = Before-tax return on sales/MSR

= (0.06 0.60) 0.25 0.40 or 40%

BES = 320,000 0.40 P 800,000

Sales = 800,000 0.75 P1,066,667

lxxxv .Answer: B

The easier calculation of sales value of 60,000 units is to divide the total annual costs by total cost ratio of 85%

(100% - 15%).

Sales required = P1,912,500/0.85 P2,250,000

Unit selling price = 2,250,000/60,000 P37.50

lxxxvi . Answer: D

Indifference Point = Change in Fixed Cost ÷ Change in Variable Cost

Increase in fixed cost: 2 @ 15,000 P30,000

Decrease in variable cost (15% - 7.5%) 80 P6

lxxxvii . Answer: A

WACM = (0.25 x 5)+(0.75 x 7)

= 6.50

BEU = 975,000/6.50

= 150,000

lxxxviii . Answer: B

The additional fixed costs of P1,200,000 should be fully covered by the same amount as additional sales (also

additional contribution margin) through an increase in selling price.

lxxxix . Answer: A

Breakeven point:

Old policy: P80,000/7 11,429

New policy: P100,000/8 12,500

Increase in Breakeven point 1,071

xc . Answer: B

WACMR = (.4 x .2) + (.5 x.3) + (.4 x.5) = 0.43

BES = 1,290,000 ÷ .43 = P3,000,000

xci . Answer: A

Contribution margin 12,000 x (1,500 – 900) P7,200,000

Fixed costs 3,600,000

Operating profit P3,600,000

xcii . Answer: B

The indifference point refers to the level of sales that would give equal profit or total costs for the two alternatives

11.30x + 60,000 = 8.90x + 82,500

2.40x = 22,500

x = 9,375

xciii . Answer: C

Variable cost ratio = 2.25/7.50 = 30%

Variable cost next year = 2.25 x 1.3333 = 3

Selling price required = 3/0.30 = P10

xciv . Answer: B

Total Fixed Cost P154,000

Operating Profit 26,000

Total Contribution Margin P180,000

Selling price P 20

Contribution margin per unit

(180,000 ÷ 12,000) 15

Unit variable cost P 5

xcv . Answer: C

Fixed costs 600,000

Operating profit 120,000

Contribution margin 720,000

xcvi . Answer: B

Contribution margin per machine hour: Contribution margin per unit x No. of units produced per machine hours

Product A P20 x 6 P120

Product B P16 x 8 P128

xcvii . Answer: A

440,000 + (110,400/0.61) = 480,000

4 – 2.70

Revised variable cost: P2.40 + (P2.00 x 0.15) P2.70

xcviii . Answer: D

VC Ratio 375,00/625,000 = 60%

VC / unit 375,000/25,000 = P15

New VC = 15 + (4.50 – 2.50)= P17

SP = 17/0.6 = P28.33

xcix . Answer: B

The level of sales that would give equal costs:

0.06S = (40 x 24,000)+ 0.02S

0.04S = 960,000

S = 24M

c . Answer: C

Additional fixed cost/week:

31,200/52 = 600

600/0.25 = 2,400

2,400/0.25 = 9,600

Alternative solution:

600 = 0.25 x 0.25S

600 = 0.0625S

S = 9,600

ci . Answer: A

New BES = 873,600/140 = 6,240

New FC = 840,000 x 1.04 = 873,600

New CM = 250 – 100 –(100 x 0.10) = 140

Old BES = 840,000/150 = 5,600

Increase in BEU = 6,240 – 5,600 = 640

cii . Answer: C

Composite CM = 40 + (2 x 20)

= 80

Composite BE = 910,000/80

= 11,375

ciii . Answer: C

Required new sales = 2005 sales + (P112,500/CMR)

= P5M +(P112,500/0.45)

P5.25M

civ . Answer: A

Breakeven units = 807,840 ÷ 5.30 152,423

New CM/unit = 20 – 14.70 = 5.30

New variable cost: (14 + (14 x.5 x 0.10) = 14.70

New FC = 792,000 + (792,000 x.20x.10) = 807,840

cv . Answer: A

Indifference point = Decrease in Fixed Cost

Increase in Variable Cost

= 80,000/0.05

= P1.60M

cvi . Answer: D

Processing hours per unit:

XY – 7: 0.75/1 = 0.75 or 45 minutes

BD – 4: 0.20/1 = 0.20 or 12 minutes

XY – 7: 100,000/0.75 x P1 = P133,333

BD – 4: 100,000/0.20 x P0.50 = P250,000

cvii . Answer: B

Units sold to earn P1M:

(1,000,000 + 1,000,000) / 5.25 = 380,952

The use of P1M fixed costs will require 380,952 units which are within the first range.

cviii . Answer: A

Fixed costs

= 792,000 +(792,000 x 0.20 x 0.10)

= 807,840

Computation = 807,840/5.30

cix . Answer: A

Unit sales required:

(316,800 + 40,000) ÷ 27.20 = 13,118 pairs

Unit Contribution Margin, Touring:

80.00 – 52.80 P27.20

cx . Answer: A

Indifference point in peso sales:

0.4S – P369,600 = 0.34S – P316,800

0.06S = 52,800

S = P880,000

cxi . Answer: D

Breakeven sales, Mountaineering:

369,600 ÷ 35.20 = 10,500

Required contribution margin – Touring

316,800 ÷ 10,500 = 30.17

Present contribution margin – Touring 27.20

Required decrease in variable cost per unit 2.97

cxii . Answer: A

New breakeven point: 348,480 ÷ 32.48 10,730

New Fixed costs: 316,800 x 1.1 = 348,480

cxiii . Answer: C

The indifference point in number of pairs is 6,600. Inasmuch that the expected level is 12,000 units, it is better to

sell Mountaineering because it has high leverage than the touring model. Once the indifference point is exceeded,

the one with the higher contribution margin (leverage) has the advantage over the one with the lower contribution

margin.

cxiv .Answer: C

Breakeven units = Fixed costs Unit contribution margin

P100,000 (P400 – P200)

500 units

cxv .Answer: D

Step 1: Compute before-tax profit:

P240,000 (1.0 – 0.4) P400,000

(P100,000 + P400,0000) P200 2,500 units

Alternative Solution:

Profit = Sales – Variable costs – Fixed costs

P500,000 = P200X

X = 2,500 units

cxvi .Answer: C

Revenue (350 x P400) + (2,700 x P360) P1,112,000

Variable costs (3,050 x P200) 610,000

Contribution margin 502,000

Fixed expenses 100,000

Operating income P 402,000

Income tax 160,800

Net income P 241,200

cxvii .Answer: A

Revenue (350 x P400) + (2,200 x P370) P 954,000

Variable costs (350 x P200) + (2,200 x P175) 455,000

Contribution margin 499,000

Fixed expenses 100,000

Operating income 399,000

Income tax 159,600

Net income P 239,400

cxviii .Answer: B

Revenue (350 x P400) + (2,000 x P380) P 900,000

Variable costs (2,350 x P200) 470,000

Contribution margin P 430,000

Fixed costs 90,000

Operating profit 340,000

Income tax 136,000

Net income P 204,000

cxix .Answer: D

Before tax profit objective (240,000 ÷ 0.6) P400,000

Fixed costs 100,000

Total contribution margin required 500,000

Less contribution margin made on units sold

January – May (350 x 200) 70,000

Additional contribution margin still needed P430,000

Additional contribution margin from 2,500 units

(2,500 x P175) P437,500

Less additional contribution margin required to meet profit objective 430,000

Maximum advertising cost P 7,500

## Гораздо больше, чем просто документы.

Откройте для себя все, что может предложить Scribd, включая книги и аудиокниги от крупных издательств.

Отменить можно в любой момент.